The Anti-Money Laundering (Amendment) Regulations, 2024 were published by the Cayman Islands government on 19 April 2024 and are now in force. The amended regulations improve the Cayman Islands regulations in tackling money laundering, proliferation financing, and terrorist financing.
The key updates are:
- Counter terrorism and proliferation references: Many tidy ups and definition changes were made to make it clear that the regulations extend to not just money-laundering, but also in the application of counter-terrorist and proliferation financing measures
- Risk Assessments: The requirements for risk assessments have been re-wording but the obligations remain that risk assessments must be readily updated and be made available upon a request of a regulatory authority in the Cayman Islands.
- Penalties and administrative fines: Offences committed by an entity with the consent, connivance or neglect of a director, manager, secretary can now lead to fines against such individuals.
- Enhanced Due Diligence: Requirements for enhanced due diligence has been expanded in the context of higher proliferation financing risks to include specific requirements for sanctions screening.
- Records and reporting: Proliferation financing considerations are now included in the requirements for maintaining records, reporting to regulatory authorities and suspicious activities.
- Designated non-financial business and profession (DNFBPs): DNFBPs must now notify their supervisory authority of any change in their AML risk assessment. DNFBPs are also now required to expand the information required to be provided on registration with their relevant supervisory authority, such as the identity of their AML Officers and beneficial owners.
The Anti-Money Laundering (Amendment) Regulations, 2024 can be found here.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.